Quick real estate news summary for the week
Office vacancies worsen, Nippon Building Fund makes a US$2 billion acquisition in Tokyo, and a potential extension to the home loan tax deduction. Below is a quick weekly summary of some of the recent goings-on in the Japanese real estate market.
Japan’s tallest wooden high-rise to be built in Nihonbashi
Mitsui Fudosan and Takenaka Corporation are planning to build a 17-story wood-frame office tower in Tokyo’s Nihonbashi district. With a proposed height of 70 meters, this would be the tallest wooden building in Japan.
180m tall office tower planned for Toranomon Station area
Nippon Tochi-Tatemono, Urban Renaissance Agency, and Sumitomo Realty & Development are embarking on a 180-meter tall office tower project for the Toranomon district in central Tokyo.
Design for new Harajuku retail building released
The exterior and rooftop design for the newest retail complex at the crossing above Meiji-Jingumae Station in Harajuku has been released.
Japan’s biggest building-to-be just got a little bigger
The trillion-Yen Tokiwabashi Project, under development by Mitsubishi Estate near Tokyo Station, has had an exterior redesign and a few floors added. With an expected height of 390 meters, this will be Japan’s tallest building when completed in 2027.
Office vacancies worsen for 5th month
Tokyo’s office vacancy rate worsened for the fifth month in a row in July as the commercial sector feels the pain of the coronavirus pandemic. According to office brokerage Miki Shoji, the office vacancy rate in Tokyo’s five business districts reached 2.77% in July, up 0.80 points from the previous month, and up 1.06 points from last year. This is the highest vacancy rate seen since March 2018 when it was 2.80%, and the highest monthly jump since the company began recording data in 2002.
Apparel company sells flagship Ginza building
On July 17, apparel giant Sanyo Shokai announced the sale of their flagship building in Ginza. Temporary store closures during the pandemic have hit the brick-and-mortar retail sector hard, with some cashing out of their real estate holdings to shore up cash reserves. Real estate developers are having a field day as struggling companies reach out to offload long-held and highly-prized assets.